Chancellor George Osborne has vowed to cut corporation tax by 5% in a move to encourage businesses to invest in the UK following Brexit.
Osborne said he would slash the rate to below 15%, which is 5% lower than the current rate of 20%.
The Chancellor told the Financial Times that the cut was part of his plans to build a “super-competitive economy” with low tax rates.
He said it was important for Britain to “get on with it” to show investors that the country was still “open for business”.
The 5% reduction would give the UK the lowest corporation tax of any major economy.
A Treasury spokesperson confirmed Osborne’s plans but said they did not know when the cut would come into force.
Shadow chancellor John McDonnell told the BBC that the proposal was “counter-productive” and would not create the business investment that the UK needed.